Advanced Search
MyIDEAS: Login to save this paper or follow this series

Macroeconomic Determinants of Retirement Timing

Contents:

Author Info

  • Gorodnichenko, Yuriy

    ()
    (University of California, Berkeley)

  • Song, Jae

    ()
    (U.S. Social Security Administration)

  • Stolyarov, Dmitriy

    ()
    (University of Michigan)

Abstract

We analyze lifetime earnings histories of white males during 1960-2010 and categorize the labor force status of every worker as either working full-time, partially retired or fully retired. We find that the fraction of partially retired workers has risen dramatically (from virtually 0 to 15 percent for 60-62 year olds), and that the duration of partial retirement spells has been steadily increasing. We estimate the response of retirement timing to variations in unemployment rate, inflation and housing prices. Flows into both full and partial retirement increase significantly when the unemployment rate rises. Workers around normal retirement age are especially sensitive to variations in the unemployment rate. Workers who are partially retired show a differential response to a high unemployment rate: younger workers increase their partial retirement spell, while older workers accelerate their transition to full retirement. We also find that high inflation discourages full-time work and encourages partial and full retirement. Housing prices do not have a significant impact on retirement timing.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp7744.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7744.

as in new window
Length: 47 pages
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7744

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: retirement; business cycles;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Césaire Meh & Yaz Terajima, 2008. "Inflation, Nominal Portfolios, and Wealth Redistribution in Canada," Working Papers, Bank of Canada 08-19, Bank of Canada.
  2. Alan L. Gustman & Thomas L. Steinmeier, 2000. "Retirement Outcomes in the Health and Retirement Study," NBER Working Papers 7588, National Bureau of Economic Research, Inc.
  3. Alessandro Barattieri & Susanto Basu & Peter Gottschalk, 2010. "Some Evidence on the Importance of Sticky Wages," Boston College Working Papers in Economics, Boston College Department of Economics 740, Boston College Department of Economics.
  4. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
  5. Michael D. Giandrea & Kevin E. Cahill & Joseph F. Quinn, 2007. "Bridge Jobs: A Comparison across Cohorts," Boston College Working Papers in Economics, Boston College Department of Economics 670, Boston College Department of Economics, revised 22 Dec 2008.
  6. Barry Bosworth, 2012. "Economic Consequences of the Great Recession: Evidence from the Panel Study of Income Dynamics," Working Papers, Center for Retirement Research at Boston College wp2012-4, Center for Retirement Research, revised Feb 2012.
  7. John Laitner & Chris House & Dmitri Stolyarov, 2005. "Valuing Lost Home Production for Dual-Earner Couples," Working Papers, University of Michigan, Michigan Retirement Research Center wp097, University of Michigan, Michigan Retirement Research Center.
  8. Yuriy Gorodnichenko & Johannes Wieland & Olivier Coibion, 2012. "The Optimal Inflation Rate in New Keynesian Models: Should Central Banks Raise Their Inflation Targets in Light of the Zero Lower Bound?," 2012 Meeting Papers, Society for Economic Dynamics 70, Society for Economic Dynamics.
  9. Olivier Coibion & Yuriy Gorodnichenko & Johannes F. Wieland, 2010. "The Optimal Inflation Rate in New Keynesian Models," NBER Working Papers 16093, National Bureau of Economic Research, Inc.
  10. Owen Haaga & Richard W. Johnson, 2012. "Social Security Claiming: Trends and Business Cycle Effects," Working Papers, Center for Retirement Research at Boston College wp2012-5, Center for Retirement Research, revised Feb 2012.
  11. Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(1), pages 1-24, January.
  12. Michael D. Hurd & Susann Rohwedder, 2010. "The Effects of the Economic Crisis on the Older Population," Working Papers, University of Michigan, Michigan Retirement Research Center wp231, University of Michigan, Michigan Retirement Research Center.
  13. David H. Autor & Mark G. Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(3), pages 71-96, Summer.
  14. Wojciech Kopczuk & Emmanuel Saez & Jae Song, 2010. "Earnings Inequality and Mobility in the United States: Evidence from Social Security Data since 1937," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 125(1), pages 91-128, February.
  15. Matthias Doepke & Martin Schneider, 2006. "Inflation and the Redistribution of Nominal Wealth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 114(6), pages 1069-1097, December.
  16. Olivier Coibion & Yuriy Gorodnichenko, 2011. "Monetary Policy, Trend Inflation, and the Great Moderation: An Alternative Interpretation," American Economic Review, American Economic Association, American Economic Association, vol. 101(1), pages 341-70, February.
  17. Bound, John & Waidmann, Timothy, 1992. "Disability Transfers, Self-Reported Health, and the Labor Force Attachment of Older Men: Evidence from the Historical Record," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(4), pages 1393-419, November.
  18. Mark Duggan & Scott A. Imberman, 2009. "Why Are the Disability Rolls Skyrocketing? The Contribution of Population Characteristics, Economic Conditions, and Program Generosity," NBER Chapters, in: Health at Older Ages: The Causes and Consequences of Declining Disability among the Elderly, pages 337-379 National Bureau of Economic Research, Inc.
  19. Barry P. Bosworth & Gary Burtless, 2010. "Recessions, Wealth Destruction, and the Timing of Retirement," Working Papers, Center for Retirement Research at Boston College wp2010-21, Center for Retirement Research, revised Dec 2010.
  20. Patricia M. Anderson & Alan L. Gustman & Thomas L. Steinmeier, 1997. "Trends in Male Labor Force Participation And Retirement: Some Evidence On The Role Of Pensions And Social Security In The 1970's And 1980's," NBER Working Papers 6208, National Bureau of Economic Research, Inc.
  21. Césaire A. Meh & Yaz Terajima, 2011. "Inflation, nominal portfolios, and wealth redistribution in Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 44(4), pages 1369-1402, November.
  22. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(4), pages 482-501, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7744. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.